The cause? A perfect storm of…
- Ultra-low UK interest rates
- A house-buying boom boosted by a stamp duty cut
- Banks with a glut of cash to lend as so many people built up savings during the pandemic
The result is ferocious lending competition for the best customers. That means, for some, remortgaging – switching deal without moving property – can result in phenomenal savings. As Martin Evans tweeted me: “@MartinSLewis I’m fortunate I’ve been able to work at home through the pandemic. I’ve been able to remortgage and my payments are over £150/mth cheaper.” A £1,850/yr saving.
Yet while on the surface it looks like a boom time for mortgage holders, you needn’t be Bob Geldof to smell a rat. Getting accepted for super-cheap mortgages ain’t easy, especially if you’ve received Covid support. Therefore my aim isn’t just to show you ‘the cheapest mortgage’ – it’s really about ‘the cheapest mortgage you can get’.
Delays are rife right now – act in time to avoid moving to the SVR
The stamp duty deadline and house-buying boom means brokers, lenders and conveyancing solicitors are in massive demand. This means things are taking longer, sometimes months right now.
Those on fixed or discount deals ending this year, beware. When they end you’re usually bumped on to lenders’ far more expensive standard variable rates (SVRs). To avoid that, you’ll need to start earlier than normal, three to six months before it ends, particularly if you’re self-employed or have complicated circumstances.
This article was originally written by MoneySavingExpert founder Martin Lewis for our weekly email on Wednesday 16 June.
